7 Cures to a Lean Purse - 5

In today's lesson, we will be looking at the fifth cure to a lean purse as put across by Goerge S. Clason in his book, The Richest Man in Babylon.

No. 5: Make of thy dwelling a profitable investment

Let me begin with the starting sentence of Arkad, the Richest Man in Babylon, as he addressed the choosen ones of the King.

“If a man setteth aside nine parts of his earnings upon which to live and enjoy life, and if any part of this nine parts he can turn into a profitable investment without detriment to his well-being, then so much faster will his treasures grow.”

All too many of our men of Babylon (the earth) do raise their family in unseemly quarters. No man’s family can fully enjoy life unless they do have a plot of ground wherein children can play in the clean earth and where the wife may raise not only blossoms but good rich herbs to feed her family.

To own his own domicile and to have it a place he is proud to care for, putteth confidence in his heart and greater effort behind all his endeavors. Therefore do I recommend that every man own the roof the sheltereth him and his.

Then will thy heart be glad because thou will own right a valuable property and thy only cost will be the government’s property taxes. And it will reduce your cost of living greatly, making available more of his earning for pleasures and gratification of his desires.

The fifth lesson therefore is this: Own thy own home.

I hope you catch the drift of this lesson and greatly apply it to your life. Shalom and stay blessed.

7 Cures to a Lean Purse - 4

Today we will start off our fourth cure to a lean purse with the assurance that you have put into practice the first three cures which are these: 1. Start thy purse to fattening; 2. Control thy expenditure and 3. Make thy gold multiply. For those of you who are joining us for the very first time, I recommend that you read our previous blog post to have a feel of what we are discussing.

So, let’s get to the forth cure to a lean purse.

No. 4: Guard Thy Treasures from Loss:

Misfortune loves a shinning mark. Gold in a man’s purse must be guarded with firmness, else it be lost. The first sound principle of investment is SECURITY FOR THY PRINCIPAL. Study carefully before parting with thy treasure, each assurance that it may be safely reclaimed.

Most often people rush to join the crowd in purchasing an investment policy which they themselves have no idea about and since they lack the financial IQ that goes with that investment, they tend to neglect their investment and most often they lose their money. Nobody seeks advice from a herdsman when he wants to make bread or advice from a cobbler when he wants to make a farm. Therefore to guard your investment from loss, seek advice from those who are well vest in that investment so that you can make an informed choice before parting with your gold.

Ask the right questions to open your understanding. Ask about the risk associated with the investment. Ask about how easy or difficult it will be to liquidate your shares. Ask about the factors that have an impact on the given security’s potential to yield returns. Seek investment research to help bridge your knowledge gap on the current status and future prospects of a given security in an asset class. Ask about the portfolio that scheme managers invest in. Explore all avenues to inform your choice.

The bottom line therefore is this: “Guard thy treasures from loss by investing only where thy principal is safe, where it may be reclaimed if desirable, and where thou will not fail to collect a fair rental. Consult with wise men. Secure the advice of those experienced in the profitable handling of gold. Let thy wisdom protect thy treasures from unsafe investments.”

That said and done, let me just say your ability to guard thy treasure from loss will secure your investment and help to free your purse. Stay blessed and practice the lessons espoused here.

     

7 Cures to a Lean Purse-3

By now I know you have started your purse to fattening and you are controlling thy expenditure. Very good then, now you are ready for the next cure to a lean purse.

 No. 3: Make thy Gold Multiply:

What do you do with gold? Spend it, hide it, adore it, admire it, ignore it or save it? The view you have about gold (money) will go a long way to influence what you do with it.

Gold (money) in a purse is gratifying to own and satisfieth a miserly soul but earns nothing. The gold we may retain from our earnings is but a start. The earnings it will make shall build our fortunes. Money can labor. Unlike you, it has the ability to work for you without an expectation of a salary, so the more of it you employ, the faster and larger it will grow.

Rather than leaving your gold snoring and snorting in a savings account or in a box under your dirty old bed or in a secured hole, why not put your gold to work through an investment plan. Today’s market offers a lot of avenues for you to put your money to work. Why not invest in Mutual Funds (EPACK, iFund, MFund, etc), or be a part owner of a company through the purchase of shares, or invest in real estate, buy bonds or treasury bills or put your money in a fixed deposit account which yields good returns. The avenues are many, so put your money to work and make thy gold multiply.

The third cure to a lean purse therefore is this: “Put each coin to laboring that it may reproduce its kind even as the flocks of the field and help bring to thee income, a stream of wealth that shall flow constantly into thy purse.”

Having the knowledge that gold can work for us, the most feasible thing to do then is to constantly engage in finding avenues for employing your money with the resolve of making our gold work for us even harder than we work for money.

Practice this cure to a lean purse and see your wealth multiply. Shalom and see you tomorrow. I love you.

        

7 Cures to a Lean Purse 2

Yesterday we started on our journey to cure our lean purses with the Seven Cures to Lean Purse as postulated by George S. Clason in The Richest Man in Babylon. I do hope you enjoyed the read and you have put the first cure to practice.

If you have, then you are ready for the second cure which is this:

No. 2: Control thy Expenditure:

What each of us calls our "necessary expenses" will always grow to equal our incomes unleess we protest to the contrary. Just as weeds grows in the field wherever the farmer leaves space for their roots, even so freely do desires grow in men whenever there is possibility of their being gratified. Thy desires are a multitude and those that thou mayest gratify are but few.

Study thoughtfully thy accustomed habits of living. Herein may be most often found certain accepted expenses that may wisely be reduced or eliminated. Let thy motto be hundred percent of appreciated value demanded for each coin spent. Have a budget and stick religiously to it.

The second cure to a lean purse then is this: "Budget thy expenses that thou mayest have coins to pay for thy necessities, to pay for thy enjoyment and to gratify thy worthwhile desires without spending more than nine-tenth of thy earnings."

The purpose of a budget is to help thy purse to fatten. It is to assist thee to have thy necessities and insofar as attainable, thy other desires. It is to enable thee to realize thy most cherished desires by defending them from thy casual wishes.

It is therefore very essential that you keep a budget and stick to that budget. Avoid as much as possible impulse buying as it were for if your purse will fatten it depends on how much you can keep in it.

So there you are with the second cure to a lean purse: Control thy expenses. Practise it and make it your second nature. Until tomorrow, it's stay blessed and shalom.

7 Cures to a Lean Purse

I recently started reading a very interesting book written by George S. Clason entitled The Richest Man in Babylon. Burried beneath the pages of this book are timeless principle on investing and growing your wealth.
For those of you who are having the desire to solve your problem of a "lean purse" the principles espoused here can really help you. According to the book, there are Seven Cures to a Lean Purse and I would like to share them with you.

Because there are seven of them, I will share them with you in seven days. Each day for one of the cures. Let me hasten to add that I am doing this without the writer's consent and so I cannot publish the whole text for you. I will therefore strongly recommend that you get a copy of the book and read. The title once again is: "The Richest Man in Babylon" written by George S. Clason.

So here are the Seven Cures to a Lean Purse:

No. 1: Start thy Purse to Fattening:

The first cure simply means that if you desire to build a fortune, it is wise to start by utilizing that source of wealth which you have already established. It posits that' "For every ten coins thou placest within thy purse take out for use but nine. Thy purse will start to fatten at once and its increasing weight will fell good in thy hand and bring satisfaction to thy soul." 

For those of you who are finding it difficult to make meaning out of this, we simply saying that keep for yourself, one-tenth of whatever you earn.So if you earn one hundred Ghana cedis a month, take out one-tenth of it (ten Ghana cedis) and put it away and your purse will start to fatten.

Remember, a part of all that you earn is yours.

So, that is the first cure to a lean purse. It sounds simple but then again, truth is always simple. Debate it among yourself and if you have any question feel free to ask them and we will gladly answer. Until tomorrow then, it's shalom and stay blessed.

Concept of Investment

Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time.

 In contrast putting money into something with an expectation of gain without thorough analysis, without security of principal, and without security of return is speculation or gambling. As such, those shareholders who fail to thoroughly analyze their stock purchases, such as owners of mutual funds, could well be called speculators. Indeed, given the efficient market hypothesis, which implies that a thorough analysis of stock data is irrational, all rational shareholders are, by definition, not investors, but speculators.

Investment is related to saving or deferring consumption. Investment is involved in many areas of the economy, such as business management and finance whether for households, firms, or governments.

To avoid speculation an investment must be either directly backed by the pledge of sufficient collateral or insured by sufficient assets pledged by a third party. A thoroughly analyzed loan of money backed by collateral with greater immediate value than the loan amount may be considered an investment. A financial instrument that is insured by the pledge of assets from a third party, such as a deposit in a financial institution insured by a government agency may be considered an investment.

~Adopted from Wikipedia, The free encyclopedia~